EPAM shares jump 20.9% after new 2026 profit forecast

EPAM shares rose 20.9% at 3:59 p.m. ET, from a $137.36 close.

EPAM (EPAM) posted third-quarter revenue of $1.43 billion, below the $1.45 billion consensus, and adjusted EPS of $3.51, above the $3.47 consensus. It now expects 2026 non-GAAP EPS of $13.23 to $13.31.

Here's how the company did:

• Revenue: $1.43 billion vs. $1.39 billion a year earlier, $1.45 billion expected
• Adjusted EPS: $3.51 vs. $3.08 a year earlier, $3.47 expected
• GAAP diluted EPS: $2.53 vs. $1.91 a year earlier
• Non-GAAP income from operations margin: 16.7% vs. 16.0% a year earlier

Revenue rose 2.3% from a year earlier, and 2.5% on an organic constant currency basis, which excludes the effect of acquisitions and currency movements.

GAAP income from operations was $175.9 million, up 21.4% from a year earlier, and its margin rose to 12.3% from 10.4%.

2026 outlook

For the full year, the company now expects revenue growth of 3.5% to 3.7%, or 2.5% to 2.7% on an organic constant currency basis.

It now expects GAAP diluted EPS of $8.41 to $8.49 and non-GAAP diluted EPS of $13.23 to $13.31, on 52.0 million weighted average diluted shares.

For the fourth quarter, the company expects revenue of $1.405 billion to $1.420 billion, a year-over-year change between a 0.2% decline and 0.9% growth.

It expects GAAP diluted EPS of $2.43 to $2.51 and non-GAAP diluted EPS of $3.50 to $3.58 for the quarter, on 49.9 million weighted average diluted shares.

Capital returns

The company is committed to returning at least 50% of its free cash flow to shareholders annually from 2027 through 2029.

The Board approved up to $1.5 billion in incremental repurchase authorization, bringing total remaining authorization to $1.8 billion through Dec. 31, 2029.

The company expects to enter a $500 million accelerated share repurchase during the week of Nov. 9, funded with cash on hand and borrowings under its existing credit facility.

EPAM has returned about $1.7 billion to shareholders since 2023, including about $489 million on repurchases in the first nine months of 2026 and about $80 million in the third quarter.

Cash and headcount

Cash, cash equivalents and restricted cash totaled $969.9 million at Sept. 30, down $331.4 million, or 25.5%, from $1.301 billion at Dec. 31, 2025.

Cash provided by operating activities was $250.1 million for the first nine months of 2026, compared with $372.0 million a year earlier.

Total headcount was about 63,650 at Sept. 30, including about 57,350 delivery professionals, an increase of 1.2% from June 30.